The S&P 500 closed at an all-time high Thursday, gaining 0.5% to 6,118.72, with the Dow Jones rising 0.9% and the NASDAQ adding 0.2%. Investors analyzed corporate earnings and President Donald Trump’s Davos address, where he urged the Federal Reserve to cut interest rates.
Speaking remotely to the World Economic Forum, Trump called for immediate global interest rate reductions and pledged to boost U.S. energy production. His comments come ahead of the Fed's meeting next week, though Wall Street expects rates to remain unchanged. The 2-year Treasury yield stayed stable, reflecting the Fed's independence.
Trump also suggested asking Saudi Arabia to lower oil prices, impacting energy markets.
Earnings reports continued to drive market movements. GE Aerospace surged over 6% after projecting robust 2025 profits driven by strong demand for aircraft engine parts. Meanwhile, American Airlines plunged 8.7% following a first-quarter earnings forecast that disappointed investors, projecting losses of $0.20–$0.40 per share.
Electronic Arts fell nearly 17% after cutting its net bookings outlook due to weak soccer game performance. Oppenheimer flagged declines in EA's Global Football title as a significant concern. Knight-Swift Transportation rose 4.7%, citing improved margins, while Alaska Air gained 2.2% after exceeding earnings expectations.
The U.S. labor market remained resilient, with unemployment claims rising modestly by 6,000 to 223,000 last week, suggesting sustained job growth in January. However, extreme weather and Los Angeles fires could increase claims in the coming weeks.
This combination of strong corporate earnings, robust employment data, and geopolitical updates provided a dynamic backdrop for record market gains.
Keywords: S&P 500 record high, Trump Davos speech, corporate earnings, Fed interest rates, GE Aerospace, American Airlines, Electronic Arts, unemployment claims.